Medicare & Health Savings Account
My wife and I both turn 65 this August/September. We are both employed and my wife is covered under my Blue Cross PPO plan through my employer. We both intend on working for a few more years. Should we both sign up for Medicare now even if we are covered by my insurance? My PPO has a HSA account which I and my employer contribute to monthly. I’ve read that once I sign up for Medicare, I can no longer contribute to the HSA. Terry, it’s all very confusing.
Terry Says
Well, you should sign up for Medicare Part A, which is free, even if you are still using private insurance.
And yes, once you sign up for any part of Medicare, you can no longer contribute to an HSA. If you mistakenly do so, the penalties are stiff.
Now, there are ways around this — by not signing up for Part A — but please take the advice of an expert, Mat Feret, at PrepareforMedicare.com and don’t try this (not signing up)!
Read this blog post at his site on this subject.
